Sanjeev Woolen Mills v. CIT

279 ITR 434Supreme Court of India2005#1513 most cited

What is Sanjeev Woolen Mills v. CIT authority for?

The assessee must consistently follow one method of accounting and cannot arbitrarily change it, particularly in contravention of Section 145 of the Income Tax Act. This principle prohibits changes in accounting methods that are not in conformity with the law.

75

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2026.

Also referred to as

Sanjeev Woolen Mills v. CIT · method of accounting · consistency principle · Section 145 Income Tax Act · change in accounting method · assessee bound by accounting method · accounting standards Income Tax · 279 ITR 434 · Supreme Court accounting method · Section 145(1) · Section 145(2)

Sections most often in play

Section 143(3)Section 142(1)Section 36(1)(viia)Section 115JBSection 131Section 132Section 132(4)Section 132(4A)
Read the full judgment

Issues it is cited on

depreciation on leased assetssection 23aretention moneysection 145(1)section 36(2)(v)section 41(4)section 211section 115baasection 145(2)section 28(iv)project completion methodsection 36(1)(viia)

Judgments citing Sanjeev Woolen Mills v. CIT

M/S. Matha Enterprises, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 304/COCH/2010[2003-04]Status: DisposedITAT Cochin16 Dec 2019AY 2003-04

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…ircumstances to arrive at real income earned by the assessee out of such unaccounted business activity as held by various courts from time to time and in the following judicial pronouncements relied upon by the assessee: d) Sanjeev Woolen Mills vs. CIT (2005) 279 ITR 102(SC) e) CTT v.Shoorji Vallabhdas and Co.(1962) 46 ITR 144(SC) f) CIT v. Kerala Financial Corpn. Ltd. (1985) 155 TTR 246(Ker.) 9.7 The CIT(A) observed that though Assessing officer had attempted to compute income by applying multiplication formulae on the basis of seized documents indicting undisclosed turnover in some period relevant to AY 2003-0…

M/S. Matha Enterprises, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 303/COCH/2010[2002-03]Status: DisposedITAT Cochin16 Dec 2019AY 2002-03

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…ircumstances to arrive at real income earned by the assessee out of such unaccounted business activity as held by various courts from time to time and in the following judicial pronouncements relied upon by the assessee: d) Sanjeev Woolen Mills vs. CIT (2005) 279 ITR 102(SC) e) CTT v.Shoorji Vallabhdas and Co.(1962) 46 ITR 144(SC) f) CIT v. Kerala Financial Corpn. Ltd. (1985) 155 TTR 246(Ker.) 9.7 The CIT(A) observed that though Assessing officer had attempted to compute income by applying multiplication formulae on the basis of seized documents indicting undisclosed turnover in some period relevant to AY 2003-0…

DCIT, Ernakulam vs. Matha Enterprises, Angamally

In the result, the appeals of the assessee in ITA Nos

ITA 269/COCH/2010[2001-02]Status: DisposedITAT Cochin16 Dec 2019AY 2001-02

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…ircumstances to arrive at real income earned by the assessee out of such unaccounted business activity as held by various courts from time to time and in the following judicial pronouncements relied upon by the assessee: d) Sanjeev Woolen Mills vs. CIT (2005) 279 ITR 102(SC) e) CTT v.Shoorji Vallabhdas and Co.(1962) 46 ITR 144(SC) f) CIT v. Kerala Financial Corpn. Ltd. (1985) 155 TTR 246(Ker.) 9.7 The CIT(A) observed that though Assessing officer had attempted to compute income by applying multiplication formulae on the basis of seized documents indicting undisclosed turnover in some period relevant to AY 2003-0…

Income Tax Officer Ward-4(1)(1), Bangalore vs. M/S Levis Strauss (India) Pvt Ltd, Bangalore

In the result, both the appeals by the Revenue are dismissed

ITA 2548/BANG/2018[2012-13]Status: DisposedITAT Bangalore16 Oct 2019AY 2012-13

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaran

For Appellant: Smt. Shreya Loyalka, CAFor Respondent: Smt. R. Premi, JCIT-DR(ITAT)(Bengaluru)
Section 37Section 37(1)

…4. the Ld. CIT(A) ought to have appreciated the fact that the AO has rightly disallowed foreign exchange loss u/s 37 being in nature of contingent and notional by relying on the decision of Hon'ble Supreme Court in the case of M/s Sanjeev Woolen Mills vs. CIT 279 ITR 434. 5. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of CIT(A) is so far as it relates to the above grounds may be reversed and that of Assessing officer may be restored. 6. The appellant craves the right to add, alter, amend and / or delete any of the grounds that may be urged. ITA Nos.2547 and 2…

Income Tax Officer Ward-4(1)(1), Bangalore vs. M/S Levis Strauss India Pvt Ltd, Bangalore

In the result, both the appeals by the Revenue are dismissed

ITA 2547/BANG/2018[2013-14]Status: DisposedITAT Bangalore16 Oct 2019AY 2013-14

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaran

For Appellant: Smt. Shreya Loyalka, CAFor Respondent: Smt. R. Premi, JCIT-DR(ITAT)(Bengaluru)
Section 37Section 37(1)

…4. the Ld. CIT(A) ought to have appreciated the fact that the AO has rightly disallowed foreign exchange loss u/s 37 being in nature of contingent and notional by relying on the decision of Hon'ble Supreme Court in the case of M/s Sanjeev Woolen Mills vs. CIT 279 ITR 434. 5. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of CIT(A) is so far as it relates to the above grounds may be reversed and that of Assessing officer may be restored. 6. The appellant craves the right to add, alter, amend and / or delete any of the grounds that may be urged. ITA Nos.2547 and 2…

Income Tax Officer-11(3)(4), Mumbai vs. Western Imaginary Transcon Private Limited, Mumbai

In the result, appeal of the Revenue in ITA No

ITA 4929/MUM/2017[2011-12]Status: DisposedITAT Mumbai20 Aug 2019AY 2011-12

Bench: Shri Sandeep Gosain & Shri Ramit Kochar

For Appellant: Shri. Bhavesh P. ShahFor Respondent: Shri. Satyanathan Raju (Sr. AR)
Section 143(3)Section 68

…hases. The assessee also relied upon certain case laws , detailed hereunder:- (i) CIT v. President Industries (2002) 258 ITR 654 (Guj.) (HC) (655) (ii) CIT v. Balachand Ajit Kumar (2003) 263 ITR 610 (MP) (HC) (612-613) (iii) Sanjeev Woolen Mills v. CIT (2005) 279 ITR 434 (SC) It was also submitted that these purchases were duly accounted for in the books of accounts of the assessee and payments were made through banking channel. The assessee relied upon decision of ITAT, Ahemdabad in the case of General Mechanical Works v. ACIT , dated 14.03.2014 wherein profits embedded in these purchases was estimated which sto…

Income Tax Officer 12(1)(1), Mumbai vs. Ami Riddhi Chem Private Limited, Mumbai

In the result, both the appeals are dismissed

ITA 5358/MUM/2017[2010-11]Status: DisposedITAT Mumbai12 Jul 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Blem/S. Ami Riddhi Chem Pvt. Ltd., V. Income Tax Officer – 9(1)(1) Office No. 16, 2Nd Floor Room No. 226/262, 2Nd Floor Building B-1, Laxmi Nivas Chs Ltd., Aayakar Bhavan, M.K. Road, Pai Nagar, S.V. Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Income Tax Officer – 12(1)(1) V. M/S. Ami Riddhi Chem Pvt. Ltd., Room No. 226, 2Nd Floor Office No. 3, Gokul Apartment Aayakar Bhavan, M.K. Road, Haridas Nagar, Shimpoli Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Assessee By : Shri Ajay Singh Department By : Shri Abdul Hakeem M

For Appellant: Shri Ajay SinghFor Respondent: Shri Abdul Hakeem M

…. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO vs. Permanand (2007) 1.07 TTJ 395 (Jd)(Trib.) 5. Shri Madhukant B. Gandhi vs. ITO ITA No. 1950/M/2009 Bench “B" dt. 23.02.2010 (AY 2005-06) (Mum.)(Trib.) 6. Sanjeev Woolen Millls Vs. CIT (2005) 279 ITR 434 (SC) 5.5. In view of the above discussion, it is seen that the addition made by the AO on account of alleged bogus purchase cannot be sustained fully in appeal. The appellant has effected purchases from hawala dealers in four years from A.Y. 2009-10 to 2012-13 adopting same modus operandi. Therefore profit/loss arising from these transactions get…

Ami Riddhi Chem Private Limited, Mumbai vs. Income Tax Officer 9(1)(1), Mumbai

In the result, both the appeals are dismissed

ITA 5215/MUM/2017[2010-11]Status: DisposedITAT Mumbai12 Jul 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Blem/S. Ami Riddhi Chem Pvt. Ltd., V. Income Tax Officer – 9(1)(1) Office No. 16, 2Nd Floor Room No. 226/262, 2Nd Floor Building B-1, Laxmi Nivas Chs Ltd., Aayakar Bhavan, M.K. Road, Pai Nagar, S.V. Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Income Tax Officer – 12(1)(1) V. M/S. Ami Riddhi Chem Pvt. Ltd., Room No. 226, 2Nd Floor Office No. 3, Gokul Apartment Aayakar Bhavan, M.K. Road, Haridas Nagar, Shimpoli Road Mumbai-400 020 Borivali (W), Mumbai – 400 092 Pan: Aagca 7111 H (Assessee) (Respondent) Assessee By : Shri Ajay Singh Department By : Shri Abdul Hakeem M

For Appellant: Shri Ajay SinghFor Respondent: Shri Abdul Hakeem M

…. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO vs. Permanand (2007) 1.07 TTJ 395 (Jd)(Trib.) 5. Shri Madhukant B. Gandhi vs. ITO ITA No. 1950/M/2009 Bench “B" dt. 23.02.2010 (AY 2005-06) (Mum.)(Trib.) 6. Sanjeev Woolen Millls Vs. CIT (2005) 279 ITR 434 (SC) 5.5. In view of the above discussion, it is seen that the addition made by the AO on account of alleged bogus purchase cannot be sustained fully in appeal. The appellant has effected purchases from hawala dealers in four years from A.Y. 2009-10 to 2012-13 adopting same modus operandi. Therefore profit/loss arising from these transactions get…

Income Tax Officer 33(1)(2), Mumbai vs. Shri Banwarilal Maheshwari, Mumbai

In the result, appeal of the Revenue is partly allowed

ITA 5563/MUM/2017[2010-11]Status: DisposedITAT Mumbai12 Apr 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bleincome Tax Officer – 33(1)(2) V. Shri Banwarilal Maheshwari Room No. 704, 7Th Floor, C-12, Row House No. 3, Pratyakshkar Bhavan, Sheetal Nagar, Ashok Chakraborthy Cross Road, Bandra Kurla Complex, Kandivali (East) Bandra(E), Mumbai – 400 051 Mumbai – 400 101 Pan: Afypm 7592 N (Appellant) (Respondent) Assessee By : Shri Hitesh Shah Department By : Shri Chaudhary Arun Kumar

For Appellant: Shri Hitesh ShahFor Respondent: Shri Chaudhary Arun Kumar
Section 133(6)

…T vs Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO vs Permanand (2007) 107 TTJ 395 (Jd) (Trib.) 5. Shri Madhukant B. Gandhi vs ITO ITA No. 1950/M/2009 Bench 'B' dt. 23-02-2010 (AY 2005-06) (Mum.) (Trib.) 6. Sanjeev Woolen Mills vs CIT (2005) 279 ITR 434 (SC) In view of the above discussion, it is seen that the addition made by the A.O on account of alleged bogus purchase cannot be sustained fully in appeal. Having regard to facts of the case and submissions made, it would be fair and reasonable if the addition made by the A.O. is restricted to G.P addition of 0.75% on the alleged bogus purchase…

ITO, WD-1(4), Kolkata vs. M/S Command Constructions Pvt. Ltd., Kolkata

In the result, the appeal by the Revenue is dismissed”

ITA 571/KOL/2015[2006-2007]Status: DisposedITAT Kolkata16 Oct 2018AY 2006-2007

Bench: Hon’Ble Shri A T Varkey, Jm & Shri M.Balaganesh, Am] I.T.A No. 571/Kol/2015 Assessment Year : 2006-07 Ito, Ward-1(4), Kolkata -Vs- M/S Command Constructions Private Ltd. [Pan: Aaccc5075A ] (Appellant) (Respondent)

For Appellant: Shri Md.Usman, CIT DRFor Respondent: Shri J. P. Khaitan, Sr. Counsel
Section 143(1)Section 147Section 148Section 45(3)

…ontinues to hold is not a taxable event and does not give rise to any taxable income. A person cannot make a profit from himself. Reliance in this regard is placed on the decision of Hon’ble Supreme Court in the case of Sanjeev Woolen Mills vs CIT reported in 279 ITR 434 (SC) at page 447 and 448 ,as under:- " In the present case, the method adopted by the assessee is to value the closing stock at the market value irrespective of the fact whether the market value of the stock at the relevant time is more than the cost value of the stock, which necessarily results in imaginary or notional profits to the assessee wh…

ACIT 3(1)(2), Mumbai vs. Edelweiss Investments Advisors Ltd, Mumbai

In the result, Revenue’s appeal in ITA No

ITA 2638/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Sept 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri DG Pansari, DRFor Respondent: Shri Ravikant S. Pathak, AR
Section 143(3)Section 154

…es and the same has been debited in the accounts of the assessee. According to AO, this mark to market loss are notional loss and therefore not allowable as deduction in view of CBDT instruction dated 23.03.2010 and also relied on Sanjeev Woolen Mills vs. CIT 279 ITR 434 (SC). The AO has not doubted the genuineness of transactions but only that this is ITA Nos. 2635-2638/Mum/2017 unascertained liability and merely provision and hence cannot be allowed. Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) after going through the facts of the case and various decision of the ITAT in assessee’s own ca…

ACIT 3(1)(2), Mumbai vs. Edelweiss Capital Markets Ltd, Mumbai

In the result, Revenue’s appeal in ITA No

ITA 2637/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Sept 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri DG Pansari, DRFor Respondent: Shri Ravikant S. Pathak, AR
Section 143(3)Section 154

…es and the same has been debited in the accounts of the assessee. According to AO, this mark to market loss are notional loss and therefore not allowable as deduction in view of CBDT instruction dated 23.03.2010 and also relied on Sanjeev Woolen Mills vs. CIT 279 ITR 434 (SC). The AO has not doubted the genuineness of transactions but only that this is ITA Nos. 2635-2638/Mum/2017 unascertained liability and merely provision and hence cannot be allowed. Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) after going through the facts of the case and various decision of the ITAT in assessee’s own ca…

ACIT 3(1)(2), Mumbai vs. Ecap Equities Ltd, Mumbai

In the result, Revenue’s appeal in ITA No

ITA 2636/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Sept 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri DG Pansari, DRFor Respondent: Shri Ravikant S. Pathak, AR
Section 143(3)Section 154

…es and the same has been debited in the accounts of the assessee. According to AO, this mark to market loss are notional loss and therefore not allowable as deduction in view of CBDT instruction dated 23.03.2010 and also relied on Sanjeev Woolen Mills vs. CIT 279 ITR 434 (SC). The AO has not doubted the genuineness of transactions but only that this is ITA Nos. 2635-2638/Mum/2017 unascertained liability and merely provision and hence cannot be allowed. Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) after going through the facts of the case and various decision of the ITAT in assessee’s own ca…

ACIT 3(1)(2), Mumbai vs. Edelweiss Investments Advisors Ltd, Mumbai

In the result, Revenue’s appeal in ITA No

ITA 2635/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Sept 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri DG Pansari, DRFor Respondent: Shri Ravikant S. Pathak, AR
Section 143(3)Section 154

…es and the same has been debited in the accounts of the assessee. According to AO, this mark to market loss are notional loss and therefore not allowable as deduction in view of CBDT instruction dated 23.03.2010 and also relied on Sanjeev Woolen Mills vs. CIT 279 ITR 434 (SC). The AO has not doubted the genuineness of transactions but only that this is ITA Nos. 2635-2638/Mum/2017 unascertained liability and merely provision and hence cannot be allowed. Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) after going through the facts of the case and various decision of the ITAT in assessee’s own ca…

ITO, WD-1(4), Kolkata vs. M/S Orchid Griha Nirman Private Ltd., Kolkata

In the result, the appeal by the Revenue is dismissed”

ITA 569/KOL/2015[2006-2007]Status: DisposedITAT Kolkata26 Sept 2018AY 2006-2007

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S. Viswanethra Ravi, Jm] I.T.A No. 569/Kol/2015 Assessment Year : 2006-07 Ito, Ward-1(4), Kolkata -Vs- M/S Orchid Griha Nirman Pvt. Ltd. [Pan: Aaaco 7148 L ] (Appellant) (Respondent)

For Appellant: Shri Goulean Hangshing, CIT DRFor Respondent: Shri J. P. Khaitan, Sr. Counsel
Section 143(1)Section 147Section 148Section 45(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : KOLKATA [Before Hon’ble Shri M.Balaganesh, AM & Shri S.S. Viswanethra Ravi, JM] I.T.A No. 569/Kol/2015 Assessment Year : 2006-07 ITO, Ward-1(4), Kolkata -vs- M/s Orchid Griha Nirman Pvt. Ltd. [PAN: AAACO 7148 L ] (Appellant) (Respondent) For the Appellant : Shri Goulean Hangshing, CIT DR For the Respondent : Shri J. P. Khaitan, Sr. Counsel Shri Sujoy Sen, Advocate Date of Hearing : 18.09.2018 Date of Pronouncement : 26.09.2018 ORDER Per M.Balaganesh, AM 1. This appeal by the Revenue arises out of the order of the Learned Commissioner of Income Tax(Appe…

ITO, WD-1(4), Kolkata vs. M/S Blue Heaven Griha Nirman Pvt. Ltd., Kolkata

In the result, the appeal by the Revenue is dismissed”

ITA 570/KOL/2015[2006-2007]Status: DisposedITAT Kolkata01 Aug 2018AY 2006-2007

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 570/Kol/2015 Assessment Year : 2006-07 Ito, Ward-1(4), Kolkata -Vs- M/S Blue Heaven Griha Nirman Pvt. Ltd. [Pan: Aaccb 3287 F ] (Appellant) (Respondent)

For Appellant: Shri Goulean Hangshing, CIT DRFor Respondent: Shri J. P. Khaitan, Sr. Counsel
Section 143(1)Section 147Section 148Section 45(3)

…ontinues to hold is not a taxable event and does not give rise to any taxable income. A person cannot make a profit from himself. Reliance in this regard is placed on the decision of Hon’ble Supreme Court in the case of Sanjeev Woolen Mills vs CIT reported in 279 ITR 434 (SC) at page 447 and 448 ,as under:- " In the present case, the method adopted by the assessee is to value the closing stock at the market value irrespective of the fact whether the market value of the stock at the relevant time is more than the cost value of the stock, which necessarily results in imaginary or notional profits to the assessee wh…

ITO 12(3)(4), Mumbai vs. Mehta Infocom P.Ltd, Mumbai

In the result, the appeal assessee is partly allowed and that of the Revenue is dismissed

ITA 3685/MUM/2017[2009-10]Status: DisposedITAT Mumbai11 Apr 2018AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am The Income Tax Officer, Ward Mehta Infocom (P) Ltd. 12(3)(4), Room No. 147A, 1 St A/301, Atul Apartments, Vs. Floor, Aayakar Bhavan, M.K. Malad (E), Mumbai-400 097 Road, Mumbai-400 020 Appellant .. Respondent Pan No. Aafcm2000E Mehta Infocom (P) Ltd. The Income Tax Officer, A/301, Atul Apartments, Ward 12(3)(4), Room No. Malad (E), Mumbai-400 097 147A, 1St Floor, Aayakar Vs. Bhavan, M.K. Road, Mumbai-400 020 Appellant .. Respondent

For Appellant: Rajesh Chamaria, ARFor Respondent: V Justin, DR
Section 143(3)Section 147Section 69C

…Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO vs. Permanand (2007) 107 TTJ 395 (Jd)(Trib) 5. Shri Madhukant B. Gandhi Vs. ITO ITA No. 1950/M/2009 Bench ‘B’ dt. 23-02-2010 (AY 2005-06) (Mum.) (Trib.). 6. Sanjeev Wooeln Mills Vs. CIT (2005) 279 ITR 434 (SC). 5.5 In view of the above discussion it is seen that the addition made by the A.O. on account of alleged bogus purchase cannot be sustained fully in appeal. Having regards to facts of the case it would be fair and reasonable if the addition made is restricted to G.P. addition of 30 % on the alleged bogus purchases of ₹ 47,61,958/- which com…

Mehta Infocom P. Ltd, Mumbai vs. ITO WD 12(3)(4), Mumbai

In the result, the appeal assessee is partly allowed and that of the Revenue is dismissed

ITA 3429/MUM/2017[2009-10]Status: DisposedITAT Mumbai11 Apr 2018AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am The Income Tax Officer, Ward Mehta Infocom (P) Ltd. 12(3)(4), Room No. 147A, 1 St A/301, Atul Apartments, Vs. Floor, Aayakar Bhavan, M.K. Malad (E), Mumbai-400 097 Road, Mumbai-400 020 Appellant .. Respondent Pan No. Aafcm2000E Mehta Infocom (P) Ltd. The Income Tax Officer, A/301, Atul Apartments, Ward 12(3)(4), Room No. Malad (E), Mumbai-400 097 147A, 1St Floor, Aayakar Vs. Bhavan, M.K. Road, Mumbai-400 020 Appellant .. Respondent

For Appellant: Rajesh Chamaria, ARFor Respondent: V Justin, DR
Section 143(3)Section 147Section 69C

…Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO vs. Permanand (2007) 107 TTJ 395 (Jd)(Trib) 5. Shri Madhukant B. Gandhi Vs. ITO ITA No. 1950/M/2009 Bench ‘B’ dt. 23-02-2010 (AY 2005-06) (Mum.) (Trib.). 6. Sanjeev Wooeln Mills Vs. CIT (2005) 279 ITR 434 (SC). 5.5 In view of the above discussion it is seen that the addition made by the A.O. on account of alleged bogus purchase cannot be sustained fully in appeal. Having regards to facts of the case it would be fair and reasonable if the addition made is restricted to G.P. addition of 30 % on the alleged bogus purchases of ₹ 47,61,958/- which com…

M/S Karnataka Vidyuth Kharkane Ltd vs. DCIT

In the result, the appeal filed by the assessee is dismissed

ITA 1581/BANG/2013[2010-11]Status: DisposedITAT Bangalore11 Apr 2018AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Arun Kumar Garodiaassessment Year :2010-11

For Appellant: Smt. Sheetal Borkar, AdvocateFor Respondent: Shri B.R. Ramesh, JCIT (DR)
Section 234BSection 37

…and the actual loss or gain can be ascertained / determined after the finalisation of purchase orders or after passing final entries. The AO has followed judgement of Hon’ble Apex Court rendered in the case of M/s. Sanjeev Woolen mills vs. CIT as reported in 279 ITR 434 and also another judgement of Hon’ble Allahabad High Court rendered in the case of CIT Vs. Oriental Motors Car Co. P. Ltd. as reported in 124 ITR 74. The AO has also referred to a CBDT instruction no. 17/2008 dated 26.11.2008 as per which it has been stated by CBDT that section 37 of IT Act envisages that an amount debited in P&L account in respe…

ITO 12(3)(3), Mumbai vs. Lab Devices India P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3646/MUM/2017[2010-11]Status: DisposedITAT Mumbai07 Dec 2017AY 2010-11

Bench: Shri R.C.Sharma, Hon’Ble & Shri Sandeep Gosain, Hon’Bleincome Tax Officer – 12(3)(3) Vs. M/S. Lab Device India Pvt. Ltd., Room No. 224, 2Nd Floor, 112, Atlanta Estate, Aayakar Bhavan, Opp. W.E. Highway, M.K. Road, Near Virwwani Industrial Mumbai – 400 020 Estate, Goregaon (East) Mumbai – 400 063 Pan/Gir No: Aaabcl 0636 K Appellant .. Respondent

Section 143(3)

…IT v. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (HC) 4. ITO v. Permanand (2007) 107 TTJ 395 (JD)(Trib) 5. Shri Madhukant B. Gandhi v. ITO ITA No. 1950/M/2009 Bench ‘B’ dt. 23.02.20100 (AY 2005- 06)(MUM.) (Trib.) 6. Sanjeev Woolen Mills v. CIT (2005) 279 ITR 434 (SC) 6.5 In view of the above discussion it is seen that the addition made by the A.O on account of alleged bogus purchases cannot be sustained fully in appeal. Having regards to facts of the case it would be fair and reasonable if the addition made is restricted to G.P. addition of 6% on the alleged bogus purchase of Rs. 54,33,026/- which comes…